PUC Signals Review as Opposition to BTL-Smart Acquisition Broadens

Public Utilities Commission (PUC) says it will not prejudge Belize Telemedia Limited's proposed acquisition of Speednet Communications Limited (SMART), as business groups, independent senators and opposition legislators intensify calls for scrutiny of the transaction under the Telecommunications Act.

The PUC issued a statement Wednesday reaffirming that its review of the proposed acquisition will be conducted strictly in accordance with the law, regulations and established procedures. The Commission acknowledged the significant public interest surrounding BTL's proposed purchase of Speednet and said it understands the concerns and differing views being expressed by stakeholders and the wider public.

Without commenting on the merits of the proposal, the regulator emphasized that it is legally obliged to remain impartial until its evaluation is complete.

The Commission said its assessment will examine issues including consumer protection, service continuity, quality of service commitments, transition arrangements, market transparency and fairness. It added that its eventual decision will constitute its official position on the matter.

The statement comes a day after BTL announced that its Board of Directors, “with the support of senior management”, approved “the proposed purchase of 100% of the issued share capital of Speednet Communications Limited (Speednet), subject to continued due diligence and negotiations before any definitive Share Purchase Agreement is executed.

FOCUS SHIFTS TO THE PUC

The PUC's intervention places renewed attention on its statutory role under the Belize Telecommunications Act.

Section 19 of the Act requires prior written approval from the Commission before a telecommunications licensee may transfer or assign its licence, cede operational control, merge with another person or licensee, or participate in a takeover. The Act further authorizes the Commission to refuse approval where it determines that a proposed transaction would frustrate the objects of the legislation.

Those statutory objects include promoting reliable and affordable telecommunications services, fostering reliance on market forces, encouraging investment and innovation, ensuring fair pricing and protecting the interests of users, service providers and consumers.

The Commission's statement did not indicate how long its review is expected to take.

SOCIAL PARTNERS BEGIN COORDINATED RESPONSE

This week, Belize's principal social partner organizations also announced that they had formally convened to discuss next steps regarding the proposed acquisition.

The August 5th joint statement was issued by the Belize Chamber of Commerce and Industry (BCCI), the Belize Network of Non-Governmental Organizations (BNN), the National Evangelical Association of Belize (NEAB) and the National Trade Union Congress of Belize (NTUCB).

The organizations said they intend to begin a comprehensive information-sharing process across their memberships to promote transparency, improve understanding of the proposed transaction and facilitate informed collective decision-making.

The groups reaffirmed their commitment to good governance, economic stability and the protection of the public interest while consulting their wider memberships before determining further action.

INDEPENDENT SENATORS REAFFIRM LEGAL CONCERNS

The four independent senators also issued a joint statement following Tuesday's Senate sitting, during which the opposition senators walked out of the chamber. Most of the independent senators—except Senator Louis Wade, who represents the churches—also participated in the walkout before later issuing their August 4 statement.

In their statement, the independent senators aligned themselves with concerns previously raised by the BCCI, the NTUCB and the Opposition regarding the legality of the proposed acquisition, competition issues and the independence of the valuation process.

The senators further stated their view that transforming Belize's telecommunications market into a monopoly would be contrary to Section 42(4) of the Telecommunications Act, while maintaining that the law establishes a mandatory regulatory process for mergers and acquisitions that may significantly lessen competition.

They also called upon the PUC to address concerns relating to the proposed change in shareholding before any transaction proceeds.

DEBATE CONTINUES

BTL has maintained that the proposed acquisition represents a strategic investment intended to reduce infrastructure duplication, improve network reliability, expand rural connectivity and generate stronger shareholder returns. The company has also stated that the transaction will not require additional borrowing or new investment from the Social Security Board.

With the PUC now publicly confirming that it has commenced its statutory review, the debate has shifted from the commercial merits of the proposed acquisition to the legal and regulatory process that must precede any final decision.

For now, the Commission has made clear that it intends to reserve judgment until that review has been completed.